Equity Analysis /
Malaysia

MY : Agribusiness - Palm oil stocks likely to rise further in Aug

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

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    CGS-CIMB
    10 August 2022
    Published byCGS-CIMB

    Malaysian palm oil stocks rose 7% mom to 1.77m tonnes as at end-Jul 2022 due to higher output and imports — lower than our expectations. We project palm oil stocks to rise 13.5% mom to 2m tonnes by end-Aug 2022F due to increasing competition from Indonesian exports. We are sector Neutral – we note a lack of near-term catalysts as earnings likely peaked in 2Q22F, but 4.7% 2022F dividend yield provides support.